Indonesian Political, Business & Finance News

Govt to raise bureaucrat's salaries to 'fight graft'

| Source: JP

Govt to raise bureaucrat's salaries to 'fight graft'

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

The government unveiled on Tuesday its New Year present for the
country's 3.6 million civil servants: a hefty salary increase.

Starting next year, the lowest monthly basic pay for civil
servants will amount to Rp 1 million (US$100), well above the
highest provincial minimum wage for employees in the private
sector. It is hoped that the raise may ease the impact of the
highest inflation rate in four years.

President Susilo Bambang Yudhoyono said on Tuesday the
increase was aimed at stamping out corruption in the lower and
middle levels of the bureaucracy.
 "Starting next year, the government will raise the monthly
salary of civil servants on par with the increase in the welfare
of people like farmers and fishermen. The salary of civil
servants of the lowest rank is Rp 1 million," Susilo said in his
address to a national meeting of state officials at the State
Palace.

There has not been a comprehensive study on the actual amount
of state losses as a result of corruption involving possibly
millions of low ranking civil servants. Most corruption cases
brought to court have involved higher ranking officials after
they had embezzled several billions of rupiah.

The planned increase is being discussed between the government
and the House of Representatives, which the President said had
hailed the initiative.

At present, a newly hired civil servant earns Rp 800,000.
Civil servants have their salary increased by Rp 40,000 per month
on average after each full year on the job.

Civil servants of the same rank may receive different amounts
of take-home pay, as certain government offices provide
additional allowances. Those who are posted in remote areas also
receive a hardship allowance.

The President said he understood that low pay was one of the
reasons for widespread corruption in the bureaucracy and law
enforcement institutions.
 "Improvements of salaries have been carried out to make civil
servants less vulnerable to corruption," he told 750 high ranking
officials from the central government, provincial administrations
and regental administrations.
 The President has put the anticorruption drive as his
government's top priority.

The planned salary increase for civil servants comes as the
Corruption Eradication Commission proposed significant hikes in
the salaries of high ranking officials, but a termination of some
state facilities they used to enjoy.

Susilo also warned government officials that he was not the
type of a person who could be easily duped by "good news" from
his subordinates.

"I also have information from other sources or other reports
(about any given situation)," he said.

To tap information directly from people, the President has
given out a special phone number to the public for complaints or
compliments.
 He said just one or two rotten government officials would
spoil much of the government's attempts to establish good
governance. The president also asserted that he would not
hesitate to dismiss one or two Cabinet members.

Meanwhile, more graft cases involving highly ranked officials
could come to light soon, as the Supreme Audit Agency (BPK) head
Anwar Nasution said his office found indications of corruption
involving the State Secretariat.

BPK has been auditing the assets of the State Secretariat,
including those in the Kemayoran fair ground and Senayan in
Central Jakarta.

Anwar said the asset of the State Secretariat in Senayan had
been turned into commercial areas from its original purpose as a
sports complex.
 "It is owned by the state but it was distributed to officials
and their families. This clearly reveals something wrong. We will
give it to the head of the state to take action," Anwar said.

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